You purchased a commercial property in Tulsa when costs were low, expecting the workforce to return to normal. You've had a commercial portfolio for decades, but you're uncertain about the future. What's going to happen in 2024?
Experts shared mixed feelings about the possibility of a commercial real estate market rebound this year. While some sectors, like retail, are looking good, others are still struggling to adapt to the post-pandemic economy.
If you're not sure where to go next, it's time for commercial lease analysis. Let's take a look at how taking a closer look at your leasing strategy can uncover hidden possibilities for profit.
Building Incentives Into Your Lease
Commercial tenants face low competition in most sectors of Tulsa's real estate. That means that now is the time to grab their attention and build unbeatable incentives into your lease.
One of the best ways to secure a commercial lease renewal right now is to promise a rent freeze. Businesses are facing major inflation, and any opportunities for saving are a plus.
Another option is to add things like expansion clauses to your lease. This gives businesses the opportunity to grow without having to relocate, which can attract up-and-coming entrepreneurs.
Considering Alternative Property Uses
If you're struggling to attract tenants with your current lease, it may be time to consider alternative property uses as part of your lease agreement analysis. For example, you may want to convert office space into a retail-friendly property.
First, you're going to need to take a look at Tulsa zoning laws. The zone your property is located in will determine its potential uses. You'll have the most versatility in mixed-use zones.
Before you start renovations, conduct a thorough commercial real estate analysis. Make sure that your proposed change is not only legal but appealing to potential tenants.
Reevaluating Your Current Rental Prices
When was the last time you had a business lease consultation? Many commercial property owners assume it's in their best interest to raise rent year after year. Under current market conditions, this isn't the case.
For many commercial property owners, it's time to go back to the drawing board with rental prices. To stay competitive, you may need to lower your prices.
Focus your energy on attracting good tenants and taking care of your property, even if it means reducing your profit. In a slow commercial market, a profit-first approach can result in long-term vacancies.
Get Commercial Lease Analysis with PMI Green Country
Not all sectors of commercial real estate are seeing the bounceback we were hoping for in 2024. As we make our way through another tough year, invest in commercial lease analysis to find innovative ways to adapt. From simple rent decreases to long-term property conversions, it's time to get creative.
PMI Green Country is one of the premier companies providing property management in Tulsa. Unlike many of our competitors, we know just as much about commercial property management as residential. Contact us to learn more about how our property management experts can help.
